Switch Inc. ( SWCH )

We have our eyes on an upcoming IPO SWCH. Switch Inc. is a data center operator. What’s a data center? It is a facility which stores and manages data from organizations. We were not able to find too many details on its financials due to the private status. It is a profitable private company. Its revenue has a 20% gain from 2015 to 2016. It has long term loan at about $825M, however a lot of the loan has been invested into expansions. Currently, the company has 3 main campuses; it is eyeing to keep adding more facilities across the country. According to report by TechNavio, global data center market is projected to grow 11% annually over the next three years. There will be more data available as the society progress which means more data centers will be needed for organizations. It’s going to continue to be a profitable industry for years to come. This IPO is going to be starting at NYSE this Friday. We are planning to add it to our portfolio as soon as possible. For day traders, this might be a good chance to grab some gains from the hype (probably a two days windows), however we expect the price will settle down a bit after the hype of a new IPO. Long term value investors could wait and look for a more reasonable entry point once the price get closer to its intrinsic value. We will have a further discussion after more information is available to the public.

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